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Second-hand vehicle market growing

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Motor Industry Association of Zimbabwe (MIAZ) estimates more than 30 000 second-hand vehicles were imported into the country last year, while the new vehicles market grew by 88%.

The majority of new vehicles were imported from neighbouring, South Africa while local vehicles constituted a small portion of the market off take.

MIAZ president Ben Khumalo said 7 500 new units were sold last year compared to 4 000 units in 2010.

He said new vehicle sales volumes are, however, still a far cry from at least 25 000 unit sales registered in the late 1990s.

“Second-hand car imports continued to grow,” said Khumalo. “We estimate that over 30 000 second-hand vehicles were imported into the country in 2011. However this segment seems to be flooded at the moment.”

He said the increase in vehicle population had put a strain on the country’s road infrastructure, which has failed to keep up with increased imports of pre-owned vehicles.

Khumalo bemoaned the absence of credit for capital goods as a huge setback on the revival and growth of the industry.

“Unlike in other markets, we do not as yet have long-term finance for purchase of vehicles,” said Khumalo.

“The industry could have performed better if we had long-term credit in the form of hire purchase and lease hire schemes.”

In the past year, the motor industry faced power outages and shortages, water shortages, low demand for both product and services, disproportionately high utilities and wage bills and liquidity shortages that resulted in slow customer payments.

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